Bangladesh: Palm oil price worries in local market as Indonesia plans export cut

Infograph:TBS Amid concerns over Indonesia’s move to curb palm oil exports in order to boost its use in biofuel production, Bangladesh’s edible oil market is experiencing price hikes. Starting this September, Indonesia plans to raise its export duty on crude palm oil from 7.5% to 10%, and on refined products up to 9.5%. As a result, in the past month, the wholesale price of edible oil in Bangladesh has increased by Tk70–100 per maund (37.32 kg), and traders fear prices could rise further in the coming months. Indonesia will raise its palm oil export levy to finance a mandated increase in the amount of the oil used in biodiesel. The mandatory blend of palm oil in biodiesel has been raised to 40% (B40) in 2025, up from 35% this year. The government is also exploring a 50% blend in 2026, and a 3% palm-based jet fuel blend from next year to reduce fossil fuel imports. The biofuel policy has been under development since 2000 as part of Indonesia’s environmental agenda. According to ...